Factors Affecting The Economy Of A State Contingent

ECON 2301 Principles of Macroeconomics Time: Th 7:05 pm – 9:45 pm Synonym: 40512 Section: 023 Room: NRG2 2120

5. How are the wealth and productivity of a nation usually measured, and what other factors must be considered when evaluating the well-being of a nation’s people?

14. Explain why a nation’s GDP is both a good and poor measure of its economic well-being and progress?

The study and application of macroeconomics influences the well-being of a nation by achieving high rates of material production and by keeping track of how much of something is being consumed. The United States is one of the wealthiest countries in the globe, making the government powerful. Government intervention in the Untied States is an important factor that keeps the economy running. Enough power to control the business cycle keeps money circulating the nation. The business cycle includes economic downturns, classified as recessions, expansions, business-cycle peaks and troughs. A good government is essential for the economy to run smoothly. There are three main macroeconomic variables in the nation that the government focuses on, Gross Domestic Product (GDP), unemployment rate, and inflation rate.

One puzzle of the world economy is that… Why are some countries so much richer than other? Or to put it differently, why have some economies’ per capita income been growing at faster rates than others? Most likely, there are numerous factors that play a role. This essay is an attempt to enumerate and discuss at least some factors.

The three major economic indicators—the real Gross Domestic Product (GDP), the unemployment rate, and the Consumer Price Index (CPI)—will be used in this analysis of the Canadian economy, along with several others.

When we think about GDP, it is important to determine the country’s output. When I say the country’s total output I mean everything produced by the people of the country, as well as all the companies within the country. Today I will be discussing to you all the recent history and expected future conditions of the American economy.

The Gross Domestic Product (GDP) is a calculation that provides insight into the current economy of our nation to allow individuals to understand the current and past year’s standings in the economy. The calculation of the GDP allows for the government to determine what adjustments are necessary to manage an effective status for the economy. Based upon the GDP the government can forecast any necessary changes that must be made to either the monetary policy or the fiscal policy. The wealth of a country is based upon the government’s ability to manage the economy through the monetary system and not on the amount of money that is located within that economy. The calculations for the GDP are produced to provide the most

Macroeconomics is the field of economics that studies the behavior of the economy as a whole not certain parts. Gross National Product (GDP) the economy’s total output; how it is affected by changes in unemployment, national income, rate of growth, and price levels. Macroeconomics encompasses an increase or a decrease in net exports would affect a nation 's capital account. Government’s role in macroeconomics is to keep the economy in equilibrium; taxes and government spending augment the balance to achieve equilibrium in the economy

GDP is not only an important indicator to a country's economy growth but also to social and politic perspectives. GDP reflects unemployment rate, inflation and interest rate. The Federal Reserve has continuously raised the interest rate at .25 point for more than 10 successive times in other to attract more and more investment. Government spending, as a part of GDP, has also increased from year to year. As a year passes, economists, firms and governments look at GDP as an indicator for the following year's economic policy in order to keep the economy go in a right track. GDP is also an indicator of recession, when an economy experiences two successive declines in GDP, the economy is going through recession.

To begin with, recall that Gross domestic product is the thing that decides the monetary development of one nation. Remember, there is a monetary development just when genuine Gross domestic product is expanded, so if the genuine Gross domestic product diminishes, there is a financial decrease which is something not useful for an economy. Gross domestic product is dictated by

There are various other important aspects associated with the economy in general and community in particular that determine wellbeing of the economic agents and these aspects are totally ignored by the concept of GDP. GDP is unable to take into account the strengths of marriages, the intelligence of the public, and the integrity of the public institutions. These moral aspects of the community play significant role in its economic development too. Wisdom, courage, learning, compassion, and devotion all such factors make our lives worthwhile and therefore it is not a wise option to ignore these factors while talking about the economic

There are a number of different sources available to find historic and forecast macroeconomic information. Macroeconomic data is compiled by different government agencies, and their websites are the trusted source for this data. One is the Bureau of Economic Analysis (BEA.gov), which compiles GDP and trade figures. Another is the Bureau of Labor Statistics (BLS.gov), which compiles unemployment and inflation statistics. The St. Louis Fed is another site that has a wealth of historic economic data, along with some ability to process that data. The agencies are primary sources, and therefore the best sources for that data. Other countries, the IMF and World Bank perform the same function for international indicators. Exchange rate data can come from a reliable secondary source like OANDA.com. The Federal Reserve sites are reliable for the presentation of economic data, some of which will be primary-source and some of which will be secondary-source.

Macroeconomic indicator are an economic statistic which are often large statistics put out by private companies, non-profit organization or various government agencies. Some of the common and vital indicators such as Nonfarm payroll jobs, Unemployment rate report, Gross Domestic Product (GDP), ISM report for manufacturing or the Consumer Confidence index, provide a measurement for evaluating the health of the economy, current business cycles, or consumer spending. They are released monthly or quarterly and can be leading or lagging. While it is important to keep up with the pulse of the economy, many experts do not look through the all of the sections of indicators because the data can change. The relative changes indicate how the economy

In earlier times Gross Domestic Product was one of the main indicators to measure a country’s wealth. Gross Domestic Product (GDP) is defined as the total value of all the goods and services produced by a nation in any given year ("Is the Gross Domestic Product (GDP) a Good Measure of Prosperity?"). There are two ways of calculating a country’s GDP. The first is the income approach which is calculated by adding the wages of workers, income from rent, interest and profits. The second, more common form of calculating GDP, is the expenditure approach. Here GDP totals consumption expenditure, investment, government spending and net exports. GDP statistics are considered to reflect a county’s economic output which could possibly lead to growth. However GDP is a measure of income and it should not be confused with wealth. Which is why most modern economists do not consider GDP to be a good measure of a